{2:06 minutes to read} In the world of long-term care, there always seems to be a change on the horizon. Genworth, the largest carrier of long-term care insurance in America, reported a very large single quarter loss last year. The insurance company has just agreed to be purchased by China Oceanwide for $2.7 billion. (The agreement is in place but has yet to be approved by regulators.)

We are now in a perfect-storm situation of low interest rates and increased life longevity, which makes it very challenging for traditional long-term care products to be price stabilized. In addition to the Genworth news, Lincoln, the largest provider of single-premium, hybrid-life, long-term care insurance announced rate increases in New York.

Because of that, we have been moving to alternative long-term care solutions. One such solution of which we are a big proponent is good-quality, participating, whole-life insurance policies that have a long-term care rider. By using this type of solution, clients are not faced with the “use it or lose it” scenario of paying long-term care premiums, which may potentially increase in price, and then never making a claim.

If you purchased the limited-pay, whole-life policy, you have the potential of having a policy where you not only have your life insurance paid up, but you have your long-term care paid up as well. At some point in time, you or your beneficiaries may be able to tap those policies for cash value, long-term care benefits, or death benefits.

Take a look at some of the material we have to offer on life insurance policies with long-term care riders. If you have any questions, feel free to give us a call.

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS. Strategic Wealth Advisors Network and Gassman Financial Group are not affiliated with APFS.

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc. (APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.

Michael Fliegelman, CLU, ChFC, AEP, RFC
Founder / President, Strategic Wealth Advisors Network
(631) 262-9254
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Brokerage Director, MassMutual
Michael@SWANWealth.com

www.SWANWealth.com

Please note that the information being provided is strictly as a courtesy. Always confer with your CPA prior to attempting to take any tax deduction. Michael Fliegelman is not a CPA, nor should the contained be considered tax “advice”.

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